This is page numbers 4731 - 4756 of the Hansard for the 18th Assembly, 3rd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was support. View the webstream of the day's session.

R.J. Simpson

R.J. Simpson Hay River North

Thank you, Mr. Speaker. I have some questions about Bob's Navy that will be directing to the Vice Admiral of Infrastructure. I'm talking, of course, about the Marine Transportation Services, and I have questions for the Minister of Infrastructure. When Cabinet purchased NTCL, they purchased a lot of decommissioned vessels, barges and tugs. It is my understanding that disposal of those units has begun. Is that correct? I'll just start with that. Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Minister of Infrastructure.

Wally Schumann

Wally Schumann Hay River South

Thank you, Mr. Speaker. I want to thank the deckhand for asking the question. To address the concerns of both hazardous materials as well as a review of the highest and best use of assets, including decommissioning barges, tugs, and other equipment the Marine Transportation Services identified to clean up scrap metal mostly located in Hay River at this point. That work has already commenced. There was an RFP out in July, and it started in late 2018, and we suspect that that will be completed by the fall of 2019.

R.J. Simpson

R.J. Simpson Hay River North

Could the Minister elaborate on just what is going to be disposed of? I know there are a couple dozen barges right on the water, and then there are probably a dozen tugs in the NTCL yard itself. Could he elaborate on how much of that is going to disappear from the landscape?

Wally Schumann

Wally Schumann Hay River South

To date, we have approximately removed 500 tonnes, so that is a significant amount. We are looking at possibly committing an additional 500 tonnes, but to date, out of that 500 tonnes is included 10 barges and one tug so far.

R.J. Simpson

R.J. Simpson Hay River North

Now, I know scrap metal has a value. It is probably not much. Is this costing the government money, or is there some money coming into the government's coffers from this?

Wally Schumann

Wally Schumann Hay River South

Marine Transportation Services is proceeding with the scrap metal cleanup through a cost avoidance plan, and to date we have had proceeds from that sale of $600,000.

The Speaker

The Speaker Jackson Lafferty

Masi. Oral questions. Member for Hay River North.

R.J. Simpson

R.J. Simpson Hay River North

Thank you, Mr. Speaker, and finally, if the Minister could please talk about how this has been used as an opportunity to keep money in the North, and employ Northerners and train Northerners? Could the Minister explain what type of northern content was included in the RFP and what type of northern businesses are being employed? Thank you, Mr. Speaker.

Wally Schumann

Wally Schumann Hay River South

There are a number of questions there, but I'll gladly answer them. First of all, on the northern content, we can be able to supply that information once the scrap metal removal plan is completed. We can commit to doing that. He has asked about whether there are opportunities; we are looking at other opportunities of partnering with Indigenous governments or development corporations to provide business opportunities, training, employment, and those types of things for scrap metal up and down the river system. NTCL has a number of properties up and down the river system that have years and years and decades old of scrap metal that still have to be cleaned up, so we will be looking at those opportunities going forward. Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Oral questions. Member for Tu Nedhe-Wiilideh.

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Thank you, Mr. Speaker. Mr. Speaker, I would like to ask questions to the Minister of ITI. I would like to ask the Minister if, prior to any mine opening, if they do potential resource revenues, that would be coming from the mine to the two governments? Thank you.

The Speaker

The Speaker Jackson Lafferty

Masi. Minister of Industry, Tourism and Investment.

Wally Schumann

Wally Schumann Hay River South

Thank you, Mr. Speaker. I think, depending on where they are in their cycle, if they are very close to starting up, our analysis unit does some forecasting for royalty revenue for the following year's budget.

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

I am going to assume that Neptune Resources or NICO mines has had that evaluation done. Can the Minister tell me if the resource revenue is coming from that mine is greater than the cost of the road from the highway to Whati?

Wally Schumann

Wally Schumann Hay River South

I would have to get that level of detail from the department, but to clarify on my other statement, when we're doing forecasting of royalties and revenues from these mining companies, particularly in their very first years of operation, there are tax implications that they have with the federal government that they get to write off a number of these costs. It takes a while to put these mines in a situation where they are profitable versus what they are allowed to write off in their taxes.

I can look at what the detail we have around the NICO mine and see what their projection is for that ongoing. There are three different types of ore bodies there, and those are subjected to change to commodity markets, as well. It makes it a little tougher to probably figure out exactly what this thing is going to generate for revenue in the coming years.

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Recognizing that we are in very early stages of any potential for what is happening in the mine that I spoke of earlier at Thor Lake at Nechalacho, I would like to ask the Minister if the Minister would be willing to have the department take a look at the potential resources revenues from that mine?

Wally Schumann

Wally Schumann Hay River South

I could certainly have that discussion with the department. We don't know exactly what they're going to do yet. We know the opportunity they are looking at is a mini micro mine, very, very small-scale, but we can certainly have those discussions and see what the opportunities are for generating some type of resource revenues out of the mini mine that they are proposing. Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Oral questions. Item 9, written questions. Item 10, returns to written questions. Item 11, replies to the Commissioner's opening address. Item 12, replies to budget address (day 1 of 7). Item 13, petitions. Item 14, reports of standing and special committees. Item 15, reports of committees on the review of bills. Item 16, tabling of documents. Minister of Finance.

Robert C. McLeod

Robert C. McLeod Inuvik Twin Lakes

Thank you, Mr. Speaker. Mr. Speaker, I wish to table the following two documents entitled "Main Estimates, 2019-2020"; and "Bearnet Communications to the Employees, February 5, 2019." Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Tabling of documents. Minister of Industry, Tourism and Investment.

Wally Schumann

Wally Schumann Hay River South

Mr. Speaker, I wish to table the following document entitled "Follow-up Letter for Oral Question 417-18(3): Supporting Small Business in Tu Nedhe-Wiilideh." Thank you, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Tabling of documents. Item 17, notices of motion. Member for Yellowknife Centre.

Julie Green

Julie Green Yellowknife Centre

Mahsi, Mr. Speaker. Mr. Speaker, I give notice that, on Friday, February 8, 2019, I will move the following motion: Now therefore I move, seconded by the honourable Member for Kam Lake, that this Assembly call on the Government of the Northwest Territories to agree to enter into binding arbitration before the scheduled strike begins. Mahsi, Mr. Speaker.

The Speaker

The Speaker Jackson Lafferty

Masi. Notices of motion. Item 18, notion of motion for first reading of bills. Item 19, motions. Item 20, first reading of bills. Item 21, second reading of bills. Item 22, consideration in Committee of the Whole of bills and other matters: Minister's Statement 131-18(3), Sessional Statement, and Tabled Document 322-18(3), Main Estimates, 2019-2020, with the Member for Hay River North in the chair.